KUALA LUMPUR (Dec 26): Independent adviser BDO Capital Consultants Sdn Bhd recommended that shareholders of Ajiya Bhd accept the unconditional voluntary takeover bid by Chin Hin Group Bhd and other joint offerors, deeming the offer price of RM1.53 per share as "not fair, but reasonable".

In a circular note filed on Ajiya's bourse filing on Tuesday, BDO Capital said the offer price per share is unfair as it represents a discount of 40 sen or 20.73% for each Ajiya share, based on revalued net asset value approach.

However, it deemed the offer as reasonable especially for those holding a significant number of Ajiya shares, considering it provides an opportunity to realise their investments.

“Notwithstanding the above, holders who wish to exit their investments in Ajiya can consider selling Ajiya shares in the open market if they are able to obtain a price higher than the offer price, net of transaction cost,” it said.

Chin Hin made a mandatory general offer (MGO) to acquire Ajiya, which supplies building materials, at RM1.53 apiece. Its shareholding, together with parties acting in concert, exceeded 50% on Dec 13.

Chin Hin first emerged as a substantial shareholder in Ajiya in March 2022 with a 24.68% stake in the company, as it sought to expand its building materials division. It intends to maintain Ajiya's listing status after the MGO, which values Ajiya at RM466 million.

In the nine months ended Aug 31, 2023 (9MFY2023), Ajiya’s net profit more than tripled to RM68.25 million or 23.43 sen per share, from RM19.58 million or 6.8 sen per share. This was despite revenue dropping 2.14% to RM215.18 million, from RM219.88 million.

Shares in Chin Hin closed three sen or 0.81% higher to RM3.75, giving it a market capitalisation of RM6.64 billion. Year to date, the stock has soared 15.38%.

Meanwhile, shares in Ajiya closed unchanged at RM1.52, giving it a market capitalisation of RM462.97 million.

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